A missing jewel


The next 20 scandals. So you won’t be shocked.

Hm.  Matthew Parris picked 20 upcoming scandals from the air.  Not surprisingly he omitted the obscure accreditation one.

Compare it with the diamond cartel:

“Fun, fun, fun. I’d like to add my own coming scandal: DIAMONDS

“In the vast majority of cases diamonds are worthless little stones. They have very little intrinsic value (try selling one back to a jeweller) and their price is maintained at artificially high levels by a global cartel (led by de Beers) that would surely be illegal in almost any other industry. This cartel is aggressively promoted through marketing that goes unchallenged by the media. Diamond engagement rings did not become fashionable in the UK until after WWII (following relentless advertising). Eternity rings were invented to mop up a supply of Soviet Siberian diamonds that threatened to devalue these silly little rocks. The perceived value of diamonds is largely an illusion. 

“The latest ruse is the idea of ‘blood diamonds’ which effectively means diamonds not controlled by this cartel. They even make Hollywood films about this laughable concept. What is so squeaky clean about a cartel diamond? They were happy to take diamonds from Stalinist Russia or Apartheid South Africa. Do we have ‘blood corn’ or ‘blood bananas’? What about all those ‘clean’ diamonds that go to get polished in Israel. Are these diamonds untainted by the political situation there?

“The slightest investigation into the economics of the diamond trade reveals it to be a total sham.”

Read more here:  Have You Ever Tried to Sell a Diamond?  An unruly market may undo the work of a giant cartel and of an inspired, decades-long ad campaign.

I’ll change some words to point you in the right direction:

“…The major investors in the diamond mines inspection realized that they had no alternative but to merge their interests into a single entity that would be powerful enough to control production and perpetuate the illusion of scarcity of diamonds quality….”

Certified quality?

Allegations that management without accreditation necessarily lacks quality echo the diamond myth.

The inspection cartel has a different business model to the diamond cartel.  It is not concerned with maintaining the price of a single low-value mineral; it grows its bureaucracy simply by trying to enforce that all management and testing business should flow through its member bodies.  The De Beers cartel would be envious of the scope for growth.  At least diamonds have industrial and aesthetic value.

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This entry was posted in Bureaucracy, Cartel, Economics, History, Politics and tagged , , , , , , , . Bookmark the permalink.

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